The recent price decline of 12% in MAAS Group Holdings Limited's (ASX:MGH) stock may have disappointed insiders who bought AU$63m worth of shares at an average price of AU$4.01 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$45m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for MAAS Group Holdings
The Last 12 Months Of Insider Transactions At MAAS Group Holdings
In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Director Wesley Maas bought AU$53m worth of shares at a price of AU$4.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$2.87). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months MAAS Group Holdings insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. MAAS Group Holdings insiders own 60% of the company, currently worth about AU$563m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About MAAS Group Holdings Insiders?
It doesn't really mean much that no insider has traded MAAS Group Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, MAAS Group Holdings insiders feel good about the company's future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that MAAS Group Holdings is showing 3 warning signs in our investment analysis, and 2 of those shouldn't be ignored...